Meteor Watch Friday, page-19

SPI200 Commentary

Follow or Fade!

SPI had some massive swings Thursday as the EOFY rally showed its hand during the day session but the weaker Euro and US Tech markets sent it back down. As I have said previously you usually don't get these kind of massive swings in normal bull markets. So you have to chalk this massive 2 day bounce on the XJO due to EOFY and options expiry rather than new fresh buying. I thought with the new bank regulations in the US and the fall in the USD the XJO could break the 5830 level today but alas it seems the XJO is back within than 5700 to 5800 range. Today I think we should see some form of support on our market as a lot of money has flowed in over the last 2 days to bring the XJO above 5800 and I don't think it will get reversed on the final day of the financial year. The SPI did print an overnight low around 5680 so that could be a target or an area of support. For todays trading I am looking to buy dips around 5680 and sell rallies around 5730